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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-09-2007, 07:10 PM   #121
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Re: Poll: What is your basic income need (floor) in retirement?

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Is this the board where members were discussing how to strain broken glass out of peanut butter so you could still eat it?
What you guys dont do that!
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-09-2007, 09:04 PM   #122
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Re: Poll: What is your basic income need (floor) in retirement?

Quote:
Originally Posted by frankie
From Kramer's detailed budget:
For $3K more per year I could take a 1-2 month overseas international vacation each year.
Kramer, how do you enjoy 1-2 months overseas for *only* $3k? That seems to good to be true. I have been flummoxed about the disparity between my travel wants and my (Europe) travel budget. Any tips Kramer?
Thanks,
Frankie
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-09-2007, 09:10 PM   #123
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Re: Poll: What is your basic income need (floor) in retirement?

Quote:
Originally Posted by frankie
From Kramer's detailed budget:

For $3K more per year I could take a 1-2 month overseas international vacation each year.

Kramer, how do you enjoy 1-2 months overseas for *only* $3k? That seems to good to be true. I have been flummoxed about the disparity between my travel wants and my (Europe) travel budget. Any tips Kramer?

Thanks,
Frankie
Backpacking, living in camp sites or youth hostels?
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-09-2007, 09:19 PM   #124
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Re: Poll: What is your basic income need (floor) in retirement?

Jumping in late!

Retired in June last year - wife and 2 teen agers. In N. CA Could get by w/ $36,000.

But we are spending(tracking) closer to $48-50 - w/ the kids camps, travel etc.ect. still OK on the budjet - to cut back would not be fun....but will be done if necessary
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-09-2007, 09:46 PM   #125
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Re: Poll: What is your basic income need (floor) in retirement?

I live in an expensive suburban area (my imputed rent is probably $24k) but I own so other costs are very small, far less than renting (ignoring gains and opportunity costs). Property taxes are my largest expense but moving would be quite costly though as they would double, not to mention capital gains and income taxes. It is furnished and I don't need to add anything. Even depreciation doesn't amount to that much although I do make do for a long time. It is really possible to get by inexpensively.
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 08:06 AM   #126
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Re: Poll: What is your basic income need (floor) in retirement?

1) ~$80K, no mortgage, but high property taxes
2) 2 adults and 2 kids
3) D/FW, TX
4) Retired since last October.

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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 01:38 PM   #127
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Re: Poll: What is your basic income need (floor) in retirement?

Quote:
Originally Posted by Masterblaster
I think that the YMOYL/simple living philosophy and FIRE preparation have quite a bit of overlap.

Based on your posts, I believe that your personal lifestyle is pretty well aligned with theirs.

The differences on this forum that I see, are that some post here about scrimping now to be able to consume massive quantities later. In my opinion this thinking is flawed. But... Who am I to judge !
From what I've seen at the simpleliving forum from previous visits, those folks take LBYM to another level (not that there's anything wrong with that). I'd rather spend an extra buck or two, and not have to worry about working hard to squeeze an extra penny or two out of every task or purchase (and spending extra time in the process).

After I figured out that my "net worth increase rate" was $255 per day during periods of typical market returns, the motivation to scrimp and deprive myself to save a buck went away. Now I focus on the easiest or quickest way of doing something even if it is a little bit more expensive overall.

Not to say that I'm a spendthrift, just that I focus my efforts where it counts, and not on trivial items. I'm sure my FIRE date is going to be pushed back by a month or two, but it is ok.
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 01:51 PM   #128
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Re: Poll: What is your basic income need (floor) in retirement?

Quote:
Originally Posted by justin
...Not to say that I'm a spendthrift, just that I focus my efforts where it counts, and not on trivial items. I'm sure my FIRE date is going to be pushed back by a month or two, but it is ok.
FIRE is not a race unless you are racing against yourself or your idea of when you want to ER. Goals are sometimes set in stone and that forces some folks to cut back more on living expenses so they can save more so they can retire sooner. Nothing wrong with that if that is what you want to do. But many of us chose to "get rich slowly" and to continue spend $$ on the things we want while continuing to save at our comfortable rate. For many of us, life is too short to create a budget so tight we can't enjoy what is important to us. The fact is, we each have a different view on what is "important" to us.

There is no right or wrong way to get to FIRE; there is only the way that works best for you.
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 02:12 PM   #129
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Re: Poll: What is your basic income need (floor) in retirement?

For floor income, I guess that would be $1k a year if we moved in with mom and dad. The $1k would be for nerve pills. But since that's not gonna happen.....

$30K (mortgage free)
2 adults
TX
I'm retired, DH will retire in 2 years.
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 02:25 PM   #130
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Re: Poll: What is your basic income need (floor) in retirement?

hahahaha....if I had to move in with my mother-in-law, 1K wouldn't be anywhere NEAR enough for nerve pills......

I agree, it's never really about "how much" you spend, but whether what you spend enriches your life, gives you a feeling of contentment, and enables you to feel freedom and abundance in your life. If you're accomplishing that, it doesn't matter if you're living on $10,000 a year or $100,000 a year. It's the satisfaction level that's important. And everyone has a different level and different items that spell satisfaction to them.

I also agree that some of the simple livers carry their particular obsession to extremes....so do some of you here who couldn't run out of money in your lifetimes, but continue to obsess to get better returns and make more. I guess when the obsession is "ours", it seems just a normal interest, but when it's "theirs", THEY are just obsessed. <grin>

But it IS really interesting to explore the differences.....and nice to find the board up and running again....I kept getting "cannot connect to server" all morning. LooseChickens

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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 06:04 PM   #131
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Re: Poll: What is your basic income need (floor) in retirement?

Floor is about $36K (Canadian) before taxes, including 1150/mo minimum mortgage payment
1 person
Vancouver Canada
28 and working, ER may be possible in 10-15 years (depends on many variables)
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 06:42 PM   #132
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Re: Poll: What is your basic income need (floor) in retirement?


I understood floor to mean living in my present abode at a base level, the floor. Obviously, there are cheaper living situations than my no mortgage house. Live in a tent or rv, etc. But I didn't sense that's where the OP wanted to take this.

My floor, as said previously, is $20,000, including health insurance and taxes, with a paid off house, for one person and a dog. My ceiling is higher.
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Re: Poll: What is your basic income need (floor) in retirement?
Old 05-10-2007, 07:04 PM   #133
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Re: Poll: What is your basic income need (floor) in retirement?

Quote:
Originally Posted by frankie
From Kramer's detailed budget:

For $3K more per year I could take a 1-2 month overseas international vacation each year.

Kramer, how do you enjoy 1-2 months overseas for *only* $3k? That seems to good to be true. I have been flummoxed about the disparity between my travel wants and my (Europe) travel budget. Any tips Kramer?

Thanks,
Frankie
Hi Frankie, I am single and travel mostly in the developing world. That means lodging is around $5-$18 per night usually, depending on the location. I try to take ground transport when traveling within a region, and only at daytime to maximize my view of the scenery!

This September I plan to leave for about a 4 to 6 month trip to SouthEast Asia. I am giving notice soon for my apartment here in San Jose, California ($1000/month). My expenses in SE Asia while traveling will be less than doing nothing here in San Jose! I am figuring about $1200/month since I will be moving around so much (this does not include round trip airfare to Asia). If I was staying put in a place like Thailand (or traveling slower), it would probably be closer to $800/month.

Flights within SE Asia are dirt cheap. I will probably do most of my trip on the ground and make one flight from Saigon to Singapore (to meet some family members who want to join me for a couple of weeks), and I priced it at about $35. My total back home USA overhead will be around $120/month for health insurance ($85/mo), car storage($20/mo), and a little miscellaneous. So, if I stay in Asia for six months, I am figuring my total travel plus back home expenses will probably be around $9000, let's say $10K to be safe.

If I were to travel to Europe or any first world country, I would definitely "hostel" it. My best friend is visiting Rome in a couple of weeks. He will be paying about $24/night for a hostel bed downtown for four days. Usually, when I am traveling on my own, I will get a private room but if the costs are higher, I will share. It just depends. Also, it is cheaper for 2 (per person) to travel than 1. When I traveled with a friend through colonial towns in Mexico this past summer, the most we paid per person per night was about $14 for some great places in perfect downtown locations in popular tourist cities (Guadalajara, Guanajuato, Zacatecas, etc.).

I carry everything in a bag a little larger than a carry on. Technically, I should probably add something like $60 per month of travel for gear depreciation.

On this coming trip, I intend to track every expense (including immigration visa fees, exchange rate hits on debits and ATM fees, etc.). Feel free to remind me to report back later!

I also plan to experiment with those sites where folks in a given foreign city offer to host travelers for a day or two, mostly as an opportunity to learn English.

Kramer
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Old 02-07-2008, 10:15 AM   #134
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Quote:
Originally Posted by loosechickens View Post
This is really interesting......I was responding to the OP question which was:

"What is your minimum income need in retirement in dollars before tax. Please state the expected minimum yearly income need. This would be the floor that covers non-discretionary expenses and the basic discretionary items that would support your basic needs."

and by that definition, our basic needs could be met on $10,000 or less. And I wasn't considering trapping any squirrels, etc. ;-)
LooseChickens
LC,
I just figured rough utilities (heat/electric $4,500) + current property taxes (southern NJ - $7,200). We're already more than the $10k ($11,700). Assuming a paid for house (which we've already planned that out), DW and I could possibly live off of $3,800/yr for groceries (or 1/3 less if we planted a lot of our fruits/vegs. Then again, we'd still have to take some extra for the occasional septic pumping. So, our absolute minimum without vehicle insurance/gas would already be at $15,500.

I guess what is one person's "basic" needs are different than others. And don't forget that inflation will affect that amount. After all, we might be able to live "bare bones" now on $15k/yr., but that $15k/yr will be more like $27k in 15 years when the mortgage is paid off.
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Old 02-07-2008, 10:32 AM   #135
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I'm jumping in here really late, but just wondering, for all of you figuring numbers; have you considered converting your number into a percentage of your assets? It might give you a clearer picture of what your earnings need to be in the future and whether or not you'd need to tap into your current assets to get there.
FWIW, I read recently that a couple aged 62 of non-smokers, there's a 50% chance one of you live to 92.
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Old 02-07-2008, 10:33 AM   #136
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Basic: $42000, including mortgage and health insurance, and taxes
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Old 02-07-2008, 11:39 AM   #137
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18K after tax. No mortgage. One person. May need to increase that to 24K depending on health insurance premium.
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Old 02-07-2008, 11:52 AM   #138
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Thanks for this thread, itís helping me plan.

1) My spending preference will be about 15% more than pre-R expenses as I will be paying medical insurance; my income should be higher (4% method), (I Rent). Debating about keeping the cleaning lady, will probably keep her and see how it goes for a few months.

So, Chinaco, maybe the pre-tax non-discretionary floor you are looking for would be about 90% of pre-R expenses which I have stated elsewhere and choose not be redundant.

2) Supporting mainly myself but will continue helping one other person, plus one cat.

3) West Coast, plan to stay in high expense area for three or four years after R. My location choices may be limited due to medical insurance coverage.

4) Currently working full-time but may R as early as May Ď08.
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Old 02-07-2008, 12:18 PM   #139
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The answer to the OP's question depends on where we end up retiring:

If retiring in a mid-size city in the southern US: $30K gross a year minimum. Ideally 60K gross.

If retiring in a mid-size city in Europe: 25K euros gross a year minimum. Ideally 50K euros gross.

Assumptions: 2 people, mortgage paid off before retiring, estimated health insurance premiums included.
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Old 02-07-2008, 02:04 PM   #140
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OK, I've gotta ask: Did they have a huge linen closet or some very thin towels?
What are towels symbolic of? I'm laughing because I caught myself doing it again this morning: hid the towels which were out on the bathroom racks so that the cleaning lady would not waste any effort carefully folding them and arrranging them back on the racks.
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